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Pan American Silver (TSE:PAAS)
TSX:PAAS
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Pan American Silver (PAAS) AI Stock Analysis

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TSE:PAAS

Pan American Silver

(TSX:PAAS)

Rating:78Outperform
Price Target:
C$51.00
▲(9.47% Upside)
Pan American Silver's overall stock score is driven by strong financial performance and positive technical indicators. The company's record earnings and strategic growth plans, including the acquisition of MAG Silver, enhance its outlook. While the valuation is moderate, the positive earnings call sentiment and robust financial health support a favorable stock assessment.
Positive Factors
Earnings
PAAS reported strong results with significant cost beats generating record quarterly mine operating earnings.
Sales Performance
The company beat EPS expectations driven by high sales volumes and low costs, marking a strong start to the year.
Negative Factors
Cash Flow
Free cash flow misses primarily due to high cash tax payments.

Pan American Silver (PAAS) vs. iShares MSCI Canada ETF (EWC)

Pan American Silver Business Overview & Revenue Model

Company DescriptionPan American Silver Corp. is a leading precious metals mining company based in Canada, primarily focused on the acquisition, exploration, development, and extraction of silver and gold in the Americas. Established in 1994, the company operates several mines and has a diverse portfolio of projects in countries including Mexico, Peru, Argentina, and Bolivia. Pan American Silver is committed to sustainable mining practices and aims to create long-term value through responsible operations and community engagement.
How the Company Makes MoneyPan American Silver generates revenue primarily through the sale of precious metals, with silver being its core product, supplemented by gold and other by-products. The company employs a traditional mining revenue model, where it extracts ore from its mining operations, processes it to separate valuable metals, and then sells the refined products on the open market. Key revenue streams include direct sales of silver and gold, as well as by-products like zinc and lead from certain operations. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its operational capabilities and resource access, contributing positively to its earnings. Factors such as global metal prices, production costs, and operational efficiency play significant roles in influencing the company’s profitability.

Pan American Silver Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
Pan American Silver delivered record financial results in Q2 2025, with substantial revenue, earnings, and cash flow achievements. The company is focused on growth through strategic acquisitions and capital investments. Despite some operational challenges affecting gold production and ongoing consultation delays at Escobal, the overall performance and financial health indicate a positive outlook.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Earnings
Pan American Silver reported record top line revenue of $811.9 million and net earnings of $189.6 million or $0.52 per share for Q2 2025.
Strong Cash Flow and Financial Position
Cash flow from operations before noncash working capital changes was a record $287.9 million, with free cash flow reaching $233 million and a cash balance of $1.1 billion.
Acquisition of MAG Silver
The proposed acquisition of MAG Silver, expected to close in the second half of 2025, aims to enhance silver production and reduce costs. MAG shareholders have already approved the transaction.
Increased Dividend
Pan American Silver announced a 20% increase in its dividend from $0.10 to $0.12 per common share.
Silver Production and Costs
Silver production in Q2 was 5.1 million ounces with all-in sustaining costs at $19.69 per ounce, at the low end of guidance.
Project Capital Investments
Investments of $73.7 million were made in sustaining and project capital, focusing on La Colorada, Skarn, Huaron, Timmins, and Jacobina mines.
Negative Updates
Gold Production Challenges
Gold production of 178,700 ounces in Q2 was slightly below guidance, affected by lower throughput and grades at Timmins and mine sequencing at El Peñon.
Geotechnical and Reconciliation Issues
Operations at Cerro Moro, El Peñon, Timmins, and Minera Florida faced negative grade reconciliation and geotechnical issues, impacting short-term production.
Escobal Consultation Process Delays
The consultation process with the Xinka Parliament for the Escobal mine continues without a specified completion date.
Company Guidance
During the Pan American Silver Second Quarter 2025 Results Conference Call, the company reported a record-setting quarter with top-line revenue of $811.9 million and net earnings of $189.6 million or $0.52 per share. Adjusted earnings were $155.4 million or $0.43 per share. Record cash flow from operations before noncash working capital changes totaled $287.9 million, with free cash flow reaching $233 million, increasing the cash balance to $1.1 billion. A proposed acquisition of MAG Silver is expected to enhance silver production and reduce costs. Silver production was 5.1 million ounces with all-in sustaining costs of $19.69 per ounce, while gold production was 178,700 ounces with costs of $1,611 per ounce. The company maintained its guidance for 2025 silver and gold production and costs, with gold production expected to be more heavily weighted to the fourth quarter. Additionally, a 20% dividend increase was announced, and nearly 0.5 million shares were repurchased. Total available liquidity was approximately $1.9 billion, supporting growth opportunities.

Pan American Silver Financial Statement Overview

Summary
Pan American Silver exhibits a solid financial performance marked by strong revenue growth, improved profitability, and robust cash flow generation. The company has effectively managed its cost structure and maintained a strong equity position with low leverage. Despite past challenges reflected in negative net income, the recent financial trajectory is positive, indicating stability and growth potential in the silver industry.
Income Statement
75
Positive
Pan American Silver has shown a strong revenue growth with a TTM (Trailing-Twelve-Months) Total Revenue of approximately $2.99 billion, up from $2.82 billion in the previous year, indicating a positive trend. The Gross Profit Margin improved significantly to 23.72% in TTM from 19.45% in the previous year, suggesting better cost management. Net Profit Margin also increased to 10.42% in TTM compared to 3.95% in the previous year. However, the company experienced negative net income in earlier years, highlighting past profitability challenges. The EBIT Margin improved to 23.67% in TTM, indicating enhanced operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a solid equity position with Stockholders' Equity at $4.82 billion. The Debt-to-Equity Ratio remains low at 0.17, indicating prudent debt management. The Equity Ratio stands at 66.84%, reflecting a strong equity base compared to total assets. However, fluctuations in total assets and liabilities over the years suggest some instability in financial structure. Overall, the balance sheet reflects a stable financial position with low leverage.
Cash Flow
80
Positive
Pan American Silver's cash flow performance is robust, with a TTM Operating Cash Flow of $837 million and Free Cash Flow of $533 million, reflecting strong cash generation capabilities. The Free Cash Flow Growth Rate is notable at 33%, indicating improved discretionary cash availability. The Operating Cash Flow to Net Income Ratio is 2.69 in TTM, showcasing efficient cash conversion from earnings. The company has managed capital expenditures effectively, supporting growth and liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.99B2.82B2.32B1.49B1.63B1.34B
Gross Profit709.78M548.50M214.60M48.36M367.94M360.18M
EBITDA1.27B1.05B476.80M-7.18M554.87M554.20M
Net Income311.56M111.50M-103.70M-340.06M97.43M177.88M
Balance Sheet
Total Assets7.21B7.20B7.21B3.25B3.52B3.43B
Cash, Cash Equivalents and Short-Term Investments923.00M887.30M440.90M142.34M335.27M279.06M
Total Debt804.40M803.30M801.60M226.84M45.86M33.56M
Total Liabilities2.38B2.49B2.44B1.05B882.58M828.04M
Stockholders Equity4.82B4.70B4.76B2.20B2.63B2.60B
Cash Flow
Free Cash Flow533.10M400.80M71.20M-242.78M148.63M283.76M
Operating Cash Flow837.06M724.10M450.20M31.91M392.11M462.31M
Investing Cash Flow-14.42M-32.60M397.90M-255.40M-186.66M-83.92M
Financing Cash Flow-222.54M-225.20M-551.80M52.97M-85.91M-329.59M

Pan American Silver Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.59
Price Trends
50DMA
41.01
Positive
100DMA
38.17
Positive
200DMA
35.47
Positive
Market Momentum
MACD
1.55
Negative
RSI
69.98
Neutral
STOCH
89.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 46.59 is above the 20-day moving average (MA) of 43.47, above the 50-day MA of 41.01, and above the 200-day MA of 35.47, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 69.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$16.40B22.5310.91%1.27%24.68%
61
Neutral
$10.32B6.250.71%2.93%3.36%-36.41%
$4.38B0.76%0.22%
$2.32B13.9911.63%
$2.49B23.9617.75%1.66%
51
Neutral
C$1.83B152.08-3.11%130.83%-208.57%
$2.35B-3.52%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PAAS
Pan American Silver
46.59
21.08
82.63%
AG
First Majestic Silver
9.14
3.88
73.76%
FSM
Fortuna Mining Corp
7.70
3.46
81.60%
MAG
MAG Silver
24.52
12.70
107.45%
TSE:AYA
Aya Gold & Silver
13.65
-0.18
-1.30%
DSVSF
Discovery Silver
3.20
2.78
661.90%

Pan American Silver Corporate Events

Financial Disclosures
Pan American Silver to Announce Q2 2025 Results
Neutral
Jul 8, 2025

Pan American Silver Corp. announced it will release its unaudited results for the second quarter of 2025 on August 6, 2025, after market close. A conference call and webcast are scheduled for August 7, 2025, to discuss these results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and operational status, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.

Business Operations and Strategy
Pan American Silver Releases 2024 Sustainability Report Highlighting ESG Achievements
Positive
May 29, 2025

Pan American Silver Corp. has released its 2024 Sustainability Report, highlighting significant achievements in environmental, social, and governance (ESG) performance. The company has reduced water usage, surpassed greenhouse gas emissions reduction targets, and contributed significantly to local communities. It has also made strides in gender diversity and supplier evaluation. The report aligns with global sustainability standards and marks the company’s 15th annual sustainability report. Pan American’s ESG efforts have been recognized by S&P Global, ranking it in the top 7% of the Metals & Mining industry, and by MSCI Inc., which upgraded its ESG score.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Pan American Silver to Acquire MAG Silver, Boosting Silver Portfolio
Positive
May 12, 2025

Pan American Silver Corp. has announced a definitive agreement to acquire MAG Silver Corp., enhancing its strategic interest in the Juanicipio Silver Mine. This acquisition, valued at approximately $2.1 billion, will significantly strengthen Pan American’s silver portfolio by adding a high-grade, low-cost silver mine. MAG shareholders will receive a premium on their shares and gain exposure to Pan American’s diversified assets, including future growth opportunities. The transaction is expected to solidify Pan American’s position as a leading silver producer in the Americas, offering substantial exploration potential and financial strength.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 25, 2025